The Reserve Bank has decided yet again to leave official interest rates steady over June. Rates have now been on hold since August last year when they were cut to the record low 1.5 per cent.

Although rates remain on hold, latest data continues to provide mixed signals regarding the overall strength of the economy.

While the national jobless rate has improved, underemployment remains a challenge with the trend growth for latest ABS retail sales at the lowest level in nearly five years. ABS building approvals are down by 4.6 per cent this year compared to the same period last year

Concerns are now growing over the emergence of a longer-term, low-growth economy.

Signs are emerging of an easing in housing market activity with auction clearance rates in Melbourne and Sydney fading over May although conditions clearly remain in favour of most sellers.

Andrew Wilson is Domain Group chief economist
Twitter@DocAndrewWilson
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